Strategy reports second-quarter results after Thursday's close, and analysts estimate a loss of $2.19 per share. Its 843,775 BTC sit on paper losses of more than $8 billion after Bitcoin fell over 14% in the quarter. The company has halted Bitcoin purchases for a month while building cash.
Strategy Inc. will report its second-quarter earnings after the market close on Thursday, and analysts estimate the Bitcoin holding giant will post a loss of $2.19 per share, according to data from TradingView and FactSet. The company is expected to announce quarterly revenue of $121.88 million, reflecting an increase of 6.40% from the same quarter last year.
Bitcoin's quarterly slide leaves more than $8 billion in paper losses
The company holds 843,775 BTC valued at over $55 billion, currently sitting on paper losses of more than $8 billion. Bitcoin fell over 14% in the second quarter, sparking concerns over the impact on Strategy's revenue and profitability.
Bitcoin was exchanging hands at $65,384.39 at the time of writing, up 1.56% over the last 24 hours, according to data from Benzinga Pro. Strategy shares were up 0.93% in pre-market trading after closing 2.09% lower at $91.67 during Friday's regular trading session.
Strategy halted Bitcoin purchases for a month
Saylor's company has stopped buying Bitcoin for a month, selling 3,620 BTC to bolster its cash reserve to $3.225 billion. As is his Sunday custom, Saylor posted a StrategyTracker chart highlighting each purchase against Bitcoin's price history, writing "We're gonna need another color" — sparking curiosity about whether he plans to resume buying.
Short interest climbs as indicators diverge
Short interest in the MSTR stock rose to $42.80 million, now representing 12.70% of total float, indicating a rising bearish outlook. However, the MACD indicator flashed a buy signal for MSTR, according to TradingView.
The Relative Strength Index meanwhile hovered just below 40, implying a neutral condition. Analysts carry a consensus price target of $360 on the stock with a Buy rating, implying a potential upside of 294.2% from current levels. Barclays began coverage of the stock earlier this month, assigning an Overweight rating and a price target of $130.
Source: Benzinga
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